On February 9, 2023, the U.S. Securities and Exchange Commission (the “SEC”) charged Kraken with offering and selling Kraken’s Staking Program – its staking-as-a-service product – as an unregistered security. Kraken, more formally known as Payward Ventures Inc. and Payward Trading Ltd is among the more significant and reputable crypto trading platforms in the United States. To settle these charges, Kraken has agreed to immediately and permanently cease offering or selling securities through any crypto asset staking services or staking programs as well as to pay $30 million in disgorgement, prejudgment interest, and civil penalties.